Daily Pivots: (S1) 0.8639; (P) 0.8667; (R1) 0.8694; More…

EUR?GBP’s rebound from 0.8470 resumes by breaking through 0.8696 temporary top. Intraday bias is back on the upside for 38.2% retracement of 0.9291 to 0.8470 at 0.8784. Sustained break there will raise the chance that whole pattern from 0.9499 has completed with three waves down to 0.8470. Stronger rise would then be seen back to 61.8% retracement at 0.8977 next. On the downside, however, break of 0.8638 minor support will turn bias back to the downside for retesting 0.8470 low.

In the bigger picture, we’re seeing the price actions from 0.9499 as developing into a corrective pattern. That is, up trend from 0.6935 (2015 low) would resume at a later stage. This will remain the favored case as long as 0.8276 support holds. However, firm break of 0.8276 support will suggest that rise from 0.6935 has completed and turn medium term outlook bearish.



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